Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

a - 1 . If your portfolio is invested 3 5 % each in A and B and 3 0 % in C , what

a-1. If your portfolio is invested 35% each in A and B and 30% in C, what is the portfolio expected return? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)
Portfolio expected return 1%
a-2. What is the variance? (Do not round intermediate calculations. Round the final answer to 8 decimal places.)
Variance
a-3. What is the standard deviation? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)
Standard deviation %
b. If the expected T-bill rate is 4.90%, what is the expected risk premium on the portfolio? (Do not round intermediate calculations. Enter the answer as a percent rounded to 2 decimal places.)
Expected risk premium %
c-1. If the expected inflation rate is 2.90%, what are the approximate and exact expected real returns on the portfolio? (Do not round intermediate calculations. Enter the answers as a percent rounded to 2 decimal places.)
\table[[Approximate expected real return,],[Exact expected real return,
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions